The star has given the complete sum of his £25k honor winnings to the MVT, which works to protect the UK's small concert spaces.
He was given the prize on mid-October as his new release People Watching was declared the best record of the past year.
He has decided to give the cash to the MVT, in recognition of the essential function small stages had in his initial steps.
"I personally couldn't be pursuing this success if it weren't for all the gigs I performed around the North East, and further afield, when I was starting out," remarked Fender. "These spaces are renowned, but they are struggling."
Since the start of 2023, at least 150 of these locations have ceased operations – roughly 16% of the whole industry in the UK.
Recently, well-known musicians such as Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its attempts to help venues survive, by adding a modest fee to their admission fees, which benefits smaller concert halls.
Fender also took part, collecting in excess of £100,000 on his recent tour to assist 38 local spots across England, Scotland, and Wales.
The money assisted venues that were facing possible closure due to difficulties caused by floods, fires and personal losses, as well as permit problems, court cases and sound issues.
Other venues received funding support in upgrading infrastructure and sound and lighting systems that positively impacted artists and audiences.
"The concept that funds from concerts in major spaces backs the local stages, where it kicks off for musicians like me, is just common sense," Fender has stated.
Fender is among several artists to contribute his Mercury Prize funds to charitable organizations.
When Pulp won the prize in the year 1996 for their release Different Class, vocalist Cocker stated that the group would give their cash to the non-profit War Child.
During 2002, musician she divided her prize among a few good causes, such as the NSPCC and a Sickle Cell charity.
"And I contributed a £1,000 to the center, to their classes, because I did gymnastics when I was a child and they lacked updated gear," Ms Dynamite shared with outlets.
Previously, they gave their prize money to the youth organization that nurtured their act, as well as other independent music bodies.
Additionally the 1994 recipients M People gave their award to a multiple sclerosis charity after a acquaintance was diagnosed the illness.
"Winning was sufficient," stated artist the singer. "The money was the cherry on top but we didn't require the cherry, because we had the cake. So our winning impacted the lives of others."
Last week, the Music Venues Trust revealed it had saved a couple of local spots in south-east England, by transferring them to local control.
The first in that area and the other in the city were bought under the community ownership scheme, which is funded by a national body and supporters who acquire "shares" in the buildings.
